Assume That the Exchange Rate Between the British Pound and the U.S.dollar

Multiple Choice

Assume that the exchange rate between the British pound and the U.S.dollar is 1 pound = 2 dollars.An Armani jacket sells for $80 in New York and 40 pounds in London.This is an example of

A) hedging
B) arbitrage.
C) currency swap.
D) exchange rate risk.
E) the law of one price.